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Cash Flow Evaluation Initial Investment : $280,000 Cash Inflows : Year 1: $50,000 Year 2: $70,000 Year 3: $90,000 Year 4: $110,000 Year 5: $130,000
Cash Flow Evaluation
- Initial Investment: $280,000
- Cash Inflows:
- Year 1: $50,000
- Year 2: $70,000
- Year 3: $90,000
- Year 4: $110,000
- Year 5: $130,000
- Requirements:
- Determine the Payback Period.
- Calculate the NPV at a 12% discount rate.
- Find the IRR.
- Compute the PI.
- Assess the financial feasibility of the project.
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Cornerstones of Cost Management
Authors: Don R. Hansen, Maryanne M. Mowen
2nd edition
1111824401, 978-1111824402
